ATI's Earnings and Revenues Surpass Estimates in Q1, Rise Y/Y

ATI Inc. ATI recorded a profit of $97 million or 67 cents per share for first-quarter 2025 compared with the year-ago quarter's $66.1 million or 46 cents.

ATI posted adjusted earnings of 72 cents per share, up 50% from the year-ago quarter figure of 48 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 58 cents.

The company’s net sales in the first quarter were $1,144.4 million, exceeding the Zacks Consensus Estimate of $1,063.6 million. Net sales increased 9.7% year over year. ATI saw strong year-over-year sales growth in aerospace and defense.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

ATI’s Segment Highlights

High Performance Materials & Components (HPMC) recorded sales of $584.1 million in the first quarter, up 10.2% from the year-ago quarter. The figure topped the Zacks Consensus Estimate of $554.2 million. In the reported quarter, HPMC's segment EBITDA increased 34.2% year over year to $131 million. Total aerospace and defense-related sales increased owing primarily to next-generation commercial jet engine demand, which was partly offset by lower sales to the medical and industrial markets.

Advanced Alloys & Solutions (AA&S) recorded sales of $560.3 million, up approximately 9.2% from the previous year's figure of $513 million. The figure topped the Zacks Consensus Estimate of $494.9 million. In terms of EBITDA, the AA&S segment registered $83.4 million in the quarter, up 16.1% year over year. Higher year-over-year sales were primarily driven by an increase in demand for aerospace and defense and conventional energy, with reduced sales to the electronics market offsetting the trend.

ATI’s Financials

In the first quarter of 2025, cash and cash equivalents amounted to $475.8 million compared with the previous year's figure of $394.4 million. The company's long-term debt was $1,713.3 million, down 20.1% from the prior year’s levels.

ATI’s Outlook

The company provided its second-quarter view. It also updated full-year 2025 financial guidance, which incorporates expected share repurchases of approximately $250 million during the second quarter. For the second quarter, ATI anticipates adjusted EBITDA in the range of $195 million to $205 million and adjusted earnings per share (EPS) between 67 cents and 73 cents. For the full year, adjusted EBITDA is projected to be between $800 million and $840 million, with adjusted EPS expected to range from $2.87 to $3.09. The company also expects adjusted free cash flow for the full year to be between $240 million and $360 million, and capital expenditures are forecasted to be in the range of $260 million to $280 million

ATI’s Zacks Rank & Other Key Picks

ATI currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth a look in the basic materials space include Hawkins, Inc. HWKN, Franco-Nevada Corporation FNV and Avino Silver & Gold Mines Ltd. ASM. While HWKN sports a Zacks Rank #1 (Strong Buy), FNV and ASM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is scheduled to report fiscal fourth-quarter results on May 14. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

Franco-Nevada is slated to release first-quarter results on May 8. The consensus estimate for FNV’s first-quarter earnings is pegged at $1. The Zacks Consensus Estimate for first-quarter earnings has been going up over the past 60 days.

Avino Silver & Gold Mines is slated to release first-quarter results on May 13. The consensus estimate for ASM’s first-quarter earnings is pegged at 3 cents. ASM has a trailing four-quarter earnings surprise of 94.4%, on average.  

 

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This article originally published on Zacks Investment Research (zacks.com).

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